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Getting back on track: macroeconomic policy lessons from the financial crisis

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  • John B. Taylor

Abstract

This article reviews the role of monetary and fiscal policy in the financial crisis and draws lessons for future macroeconomic policy. It shows that policy deviated from what had worked well in the previous two decades by becoming more interventionist, less rules-based, and less predictable. The policy implications are thus that policy should ?get back on track.? The article is a modified version of a presentation given at the Federal Reserve Bank of Philadelphia?s policy forum ?Policy Lessons from the Economic and Financial Crisis,? December 4, 2009. The presentation was made during a panel discussion that also included James Bullard and N. Gregory Mankiw.

Suggested Citation

  • John B. Taylor, 2010. "Getting back on track: macroeconomic policy lessons from the financial crisis," Review, Federal Reserve Bank of St. Louis, vol. 92(May), pages 165-176.
    • Handle: RePEc:fip:fedlrv:y:2010:i:may:p:165-176:n:v.92no.3
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    References listed on IDEAS

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    1. John O’Neill, 2009. "Market," Chapters, in: Jan Peil & Irene van Staveren (ed.), Handbook of Economics and Ethics, chapter 42, Edward Elgar Publishing.
    2. John B. Taylor & John C. Williams, 2009. "A black swan in the money market," Proceedings, Federal Reserve Bank of San Francisco, issue Jan.
    3. John B. Taylor, 2007. "Housing and monetary policy," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 463-476.
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    Macroeconomics; Financial crises;

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